Weekly Contest: How will iPhone 3G’s price, Apple’s new business model affect RIM?

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Douglas Soltys
on June 13, 2008, at 5:25 AM
in News and Spotlight
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Comments: 55 responses
55 Comments

Steve Jobs iPhone

Due to the great response to this question, we’re going to make it the Weekly Contest. Once again we’ll be offering the one two punch of a free BBCool tee shirt and Magmic’s THK3 to the person with the best comment. Feel free to comment again now that prizes are at stake. Also, try to factor in the Bold launching a mere 4 days after the iPhone (in Canada at least).

Reading this CN article about Apple’s new business model for the iPhone has raised a lot of questions at BBCool HQ. Unlike the release of the original iPhone, Apple is targeting massive consumer sales over carrier revenue. Apple has killed carrier exclusivity per region for the iPhone 3G, and it’s believed that they will only be taking the initial sale price, while operators will then keep 100% of the subscriber fees.

Now, this ‘new’ model in itself isn’t much of a big deal — in fact, it’s pretty much the model that every other handset vendor uses. However, when you factor in the lowered price point (USD$200), cheap unlimited data rates (USD$30, cheap for Canada at least!) and that Apple was able to sell 6 million devices in a year on just a few carriers, you have to wonder how this will affect the Waterloo boys and girls. As hyped as the Apple vs. RIM affair has been, I don’t expect the BlackBerry Bold to be launching for $200, do you?

Post a comment and let us know what you think. Also, for those interested in getting some iPhone love on their BlackBerry, check out Bplay’s slick iBerry 2.0 theme.

(image via Engadget)

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  • Adam

    Reduce the sticker price by $100 and increase monthly data charges by $10 for 2 years. Smart move, but it’s still a price increase over the 2g iPhone.

    See the details here: http://www.boygeniusreport.com/2008/06/09/iphone-3g-the-details-you-never-wanted-to-know/

  • Adam

    Reduce the sticker price by $100 and increase monthly data charges by $10 for 2 years. Smart move, but it’s still a price increase over the 2g iPhone.

    See the details here: http://www.boygeniusreport.com/2008/06/09/iphone-3g-the-details-you-never-wanted-to-know/

  • Adam

    Reduce the sticker price by $100 and increase monthly data charges by $10 for 2 years. Smart move, but it’s still a price increase over the 2g iPhone.

    See the details here: http://www.boygeniusreport.com/2008/06/09/iphone-3g-the-details-you-never-wanted-to-know/

  • Roger

    I would love it if that would lower the price of Blackberries…but I doubt it…

  • Roger

    I would love it if that would lower the price of Blackberries…but I doubt it…

  • suge white

    I don’t think any carrier can as far as phone cost. I don’t think sprints instinct will be $199 either. I myself am seriously thinking of jumping on the iphone bandwagon from my sprint 8830. Now how long is that line gonna be for tickets for my ride july 11?

  • suge white

    I don’t think any carrier can as far as phone cost. I don’t think sprints instinct will be $199 either. I myself am seriously thinking of jumping on the iphone bandwagon from my sprint 8830. Now how long is that line gonna be for tickets for my ride july 11?

  • Burt

    Where is the 4.5 software release for the Curve? If RIM is smart, they’ll start releasing updates for their products more often. The one way to keep the current user base is to prove that you care about them. Getting the new OS and other updates into the *existing* hardware would be a good start!

  • Burt

    Where is the 4.5 software release for the Curve? If RIM is smart, they’ll start releasing updates for their products more often. The one way to keep the current user base is to prove that you care about them. Getting the new OS and other updates into the *existing* hardware would be a good start!

  • David Nottingham

    Personally I think RIM would be wise to introduce the bold at $250 or even $300 and throw in an 8 GB card since the BOLD does MORE than the iPhone in many respects (execpt browsing).

  • David Nottingham

    Personally I think RIM would be wise to introduce the bold at $250 or even $300 and throw in an 8 GB card since the BOLD does MORE than the iPhone in many respects (execpt browsing).

  • Willas

    I think it’s ovious.
    What else can you do with unlimited data and 3G ?
    Downloads of music and videos.
    From where ?
    iTunes of course.
    You know what I ask ?
    Something to connect iPhone to my laptop to watch my movies in a bigger screen. Oh yeah.

  • Willas

    I think it’s ovious.
    What else can you do with unlimited data and 3G ?
    Downloads of music and videos.
    From where ?
    iTunes of course.
    You know what I ask ?
    Something to connect iPhone to my laptop to watch my movies in a bigger screen. Oh yeah.

  • Willas

    I think it’s ovious.
    What else can you do with unlimited data and 3G ?
    Downloads of music and videos.
    From where ?
    iTunes of course.
    You know what I ask ?
    Something to connect iPhone to my laptop to watch my movies in a bigger screen. Oh yeah.

  • supermartin

    You would hope that RIM was waiting for this Apple release to gauge their pricing. Reports of 550 Euros are rediculous for a Bold, especially since $ is made off years of data subscription.
    I think this is a pivotal time for RIM, they must go lower or lose huge marketshare.
    peace

  • supermartin

    You would hope that RIM was waiting for this Apple release to gauge their pricing. Reports of 550 Euros are rediculous for a Bold, especially since $ is made off years of data subscription.
    I think this is a pivotal time for RIM, they must go lower or lose huge marketshare.
    peace

  • http://www.videos4blackberry.info/ Bla1ze

    RIM needs to make and official announcement of the Thunder, they also need to work with Canadian carriers in order to bring unlimited data prices down to be at least on par with US prices of plans, at this point they should also be making an official price point announcement of the Bold that should be on par with the iPhone (not holding my breath), RIM has spent that past few months gaining speed in the consumer market and this will cease with the availability of the 3G iPhone in so many places and the pricepoint that it brings with it. RIM has to comeback with something (though I doubt they will). Either way, i’ll be getting a Bold, iPhone and BlackBerry are on 2 different levels but tell that too the 18-25 yr old with $200+ in his pockets to blow.

  • http://www.videos4blackberry.info Bla1ze

    RIM needs to make and official announcement of the Thunder, they also need to work with Canadian carriers in order to bring unlimited data prices down to be at least on par with US prices of plans, at this point they should also be making an official price point announcement of the Bold that should be on par with the iPhone (not holding my breath), RIM has spent that past few months gaining speed in the consumer market and this will cease with the availability of the 3G iPhone in so many places and the pricepoint that it brings with it. RIM has to comeback with something (though I doubt they will). Either way, i’ll be getting a Bold, iPhone and BlackBerry are on 2 different levels but tell that too the 18-25 yr old with $200+ in his pockets to blow.

  • suge white

    Great point. I just don’t see RIM dropping their price on the BB. The OS updtes are put out here and there but not all at once. Not at the same for all carriers. “We” are sitting here waiting for OS 4.3 or 5 whatever they are calling it and they are talking about 4.6 now in the bold and “thunder”. Wtf…and I mean give me somthing to make me believe RIM is going in the right direction because Apple is not that far behind…

  • suge white

    Great point. I just don’t see RIM dropping their price on the BB. The OS updtes are put out here and there but not all at once. Not at the same for all carriers. “We” are sitting here waiting for OS 4.3 or 5 whatever they are calling it and they are talking about 4.6 now in the bold and “thunder”. Wtf…and I mean give me somthing to make me believe RIM is going in the right direction because Apple is not that far behind…

  • http://www.dragonhunting.com/ James

    I think it’s important to note how this targeting of the “masses” creates some problems of it’s own.

    The monthly cost has gone up. This isn’t such a big deal because the iPhone is so much cheaper right? Well the problem is that before, the people who could afford to drop $500 on a phone generally aren’t going to have too much trouble paying $50-60 a month for a plan. The people that couldn’t afford that $500 phone are now going to be jumping on to this like fleas onto a high maintenance poodle. They’re going to be in for a shock once they’re locked into 2-3 year agreements that are priced at $70-80 a month.

  • http://www.dragonhunting.com James

    I think it’s important to note how this targeting of the “masses” creates some problems of it’s own.

    The monthly cost has gone up. This isn’t such a big deal because the iPhone is so much cheaper right? Well the problem is that before, the people who could afford to drop $500 on a phone generally aren’t going to have too much trouble paying $50-60 a month for a plan. The people that couldn’t afford that $500 phone are now going to be jumping on to this like fleas onto a high maintenance poodle. They’re going to be in for a shock once they’re locked into 2-3 year agreements that are priced at $70-80 a month.

  • Lewis

    The new iPhone 3G will destroy BlackBerry unless they can come up with something better…

    Apple owns the portable MP3 player market. If you are looking to get an MP3 player, your first task is to look at the available ipods. They own it.

    And they will very soon own the cell phone market too.

    RIM – give us something better.

    Apple – you may have me as a customer as soon as my BlackBerry contract ends.

    And I would fight to the death to save my Pearl! But Apple are just way ahead. MobileMe, GPS, 3G, full browsing, itunes ota, APP STORE OTA…

    Why did RIM not do a central app store? Why can I not reply to emails on my laptop and have those changes reflected on my handset?

    I think RIM should think less about what their next handset will be and work on some of the software that apple seem to have gotten just right.

    A future apple customer,

    Lewis

  • Lewis

    The new iPhone 3G will destroy BlackBerry unless they can come up with something better…

    Apple owns the portable MP3 player market. If you are looking to get an MP3 player, your first task is to look at the available ipods. They own it.

    And they will very soon own the cell phone market too.

    RIM – give us something better.

    Apple – you may have me as a customer as soon as my BlackBerry contract ends.

    And I would fight to the death to save my Pearl! But Apple are just way ahead. MobileMe, GPS, 3G, full browsing, itunes ota, APP STORE OTA…

    Why did RIM not do a central app store? Why can I not reply to emails on my laptop and have those changes reflected on my handset?

    I think RIM should think less about what their next handset will be and work on some of the software that apple seem to have gotten just right.

    A future apple customer,

    Lewis

  • suge white

    I’m sold as of today. I will be joining the darkside. I was trying to see if the instinct could compare but that is a STRONG no…they did match the price though..there was a mention of rebate also..so my 8830 will be up for sale soon…about 3 weeks to be exact.

  • suge white

    I’m sold as of today. I will be joining the darkside. I was trying to see if the instinct could compare but that is a STRONG no…they did match the price though..there was a mention of rebate also..so my 8830 will be up for sale soon…about 3 weeks to be exact.

  • Johnny D

    Mark me down as another RIM/BB guy who’s going to the darkside. I once owned a pearl for a few months and couldnt stand the little screen. I upgraded to the Curve which I loved, though it has major limitations. I have waited since last Oct to get 4.3 err 4.5, and even though I have the beta on my phone the beta is laggy and not as functional as I hoped. Yes the video camera is nice, but not needed. Web browsing is better but not as nice as the Iphone. I still love the upgradeable memory in BB’s even thou I only have four gig now. Other then that I will miss the BB keyboard, and I paranoid that I will scratch the shit out of the Iphones screen but all in all its a better phone for a better price. The curve goes on ebay tomorrow. Sorry RIM and BB but Im outta here!

  • Johnny D

    Mark me down as another RIM/BB guy who’s going to the darkside. I once owned a pearl for a few months and couldnt stand the little screen. I upgraded to the Curve which I loved, though it has major limitations. I have waited since last Oct to get 4.3 err 4.5, and even though I have the beta on my phone the beta is laggy and not as functional as I hoped. Yes the video camera is nice, but not needed. Web browsing is better but not as nice as the Iphone. I still love the upgradeable memory in BB’s even thou I only have four gig now. Other then that I will miss the BB keyboard, and I paranoid that I will scratch the shit out of the Iphones screen but all in all its a better phone for a better price. The curve goes on ebay tomorrow. Sorry RIM and BB but Im outta here!

  • http://blackberryblogging.blogspot.com/ William Stewart

    I just don’t get the obsession with iPhone.

    Don’t get me wrong, I tend to love Apple products, I have a MacBook, iBook and 2 iMacs at home, dating back over 10 years, and have used iPods since 2003.

    I also have a BlackBerry.

    The BlackBerry is a great business tool, it is just *fantastic* for email. Maybe I’m easily impressed though, my last device was an iMate Windows Mobile ;-) Surely there’s room for both?

  • http://blackberryblogging.blogspot.com/ William Stewart

    I just don’t get the obsession with iPhone.

    Don’t get me wrong, I tend to love Apple products, I have a MacBook, iBook and 2 iMacs at home, dating back over 10 years, and have used iPods since 2003.

    I also have a BlackBerry.

    The BlackBerry is a great business tool, it is just *fantastic* for email. Maybe I’m easily impressed though, my last device was an iMate Windows Mobile ;-) Surely there’s room for both?

  • DavidB

    RIM will soon be feeling the effects of their ignorance of the consumer market. They can release Bold’s and Thunder’s and Kickstart’s and Javelin’s all they want, but if they don’t get off their butts and fix what’s so obviously wrong with the current Blackberry smartphones, people will jump ship in a heartbeat. Why would I, as a consumer on a budget, pay $300 or $500 (or even $99!) for some new Blackberry when RIM has shown they do not care about the user once you’ve bought into Blackberry?

  • DavidB

    RIM will soon be feeling the effects of their ignorance of the consumer market. They can release Bold’s and Thunder’s and Kickstart’s and Javelin’s all they want, but if they don’t get off their butts and fix what’s so obviously wrong with the current Blackberry smartphones, people will jump ship in a heartbeat. Why would I, as a consumer on a budget, pay $300 or $500 (or even $99!) for some new Blackberry when RIM has shown they do not care about the user once you’ve bought into Blackberry?

  • Nick

    Are you kidding me! With all the changes for the next iPhone, you’d be crazy not to buy one. The kinda of make the Blackberry interface obsolete! The reason I held back from switching to the iPhone have all been addressed and answered. Exchange compatibility, 3G, price… done! I’ve never seen so much buzz around my office. Every BB owner will switch over come July, regardless of penalties to exit current provider contracts. Even our IT guys are supporting this thing whole heartedly! I simply can not wait!

  • Nick

    Are you kidding me! With all the changes for the next iPhone, you’d be crazy not to buy one. The kinda of make the Blackberry interface obsolete! The reason I held back from switching to the iPhone have all been addressed and answered. Exchange compatibility, 3G, price… done! I’ve never seen so much buzz around my office. Every BB owner will switch over come July, regardless of penalties to exit current provider contracts. Even our IT guys are supporting this thing whole heartedly! I simply can not wait!

  • mike

    I am one of the so called “dark side switchers” lol. On july 11th i will have a nice new and shiny iphone 3g. I have two macs at home and try not to use winblows as much as possible so the mac support with the iphone is going to be a no brainer. I wish RIM would do something more than that crap product pocket mac

  • mike

    I am one of the so called “dark side switchers” lol. On july 11th i will have a nice new and shiny iphone 3g. I have two macs at home and try not to use winblows as much as possible so the mac support with the iphone is going to be a no brainer. I wish RIM would do something more than that crap product pocket mac

  • Dan

    My whole family currently subscribes to ATT service. I have the Curve, my wife has Samsung, oldest son just a Samsung, youngest son bought his own iPhone which he has already said he will replace with the new 3G version. I have always liked Apple’s inovation and scrappy marketing flair having owned their computers for years. The Curve serves me well, but I find myself using Gmail instead of business synch and I keep looking over my son’s shoulder at the iPhone admiring the interface.
    I’m afraid I will switch to what I knew was inevitable with the second generation iPhone. Steve Jobs knows what we want and he delivers. You know there will be software updates delivered to close the deal…such as video and talking GPS.
    By the way…a beautiful iPhone theme for the Blackberry can be downloaded for free or a donation at themes4BB.com

  • Dan

    My whole family currently subscribes to ATT service. I have the Curve, my wife has Samsung, oldest son just a Samsung, youngest son bought his own iPhone which he has already said he will replace with the new 3G version. I have always liked Apple’s inovation and scrappy marketing flair having owned their computers for years. The Curve serves me well, but I find myself using Gmail instead of business synch and I keep looking over my son’s shoulder at the iPhone admiring the interface.
    I’m afraid I will switch to what I knew was inevitable with the second generation iPhone. Steve Jobs knows what we want and he delivers. You know there will be software updates delivered to close the deal…such as video and talking GPS.
    By the way…a beautiful iPhone theme for the Blackberry can be downloaded for free or a donation at themes4BB.com

  • Ace

    I’m a current curve user. I was holding out for the bold when launched. However, I think I am going to go with the iPhone due to its new features. I am pretty sure the developer apps for the iphone will match the bolds features and put it on equal footing. So I guess I will be the person behind mike – lol on July 11th.

  • Ace

    I’m a current curve user. I was holding out for the bold when launched. However, I think I am going to go with the iPhone due to its new features. I am pretty sure the developer apps for the iphone will match the bolds features and put it on equal footing. So I guess I will be the person behind mike – lol on July 11th.

  • riddick

    iPhone 3G – step 1-12 for kicking the crackberry addiction.

  • riddick

    iPhone 3G – step 1-12 for kicking the crackberry addiction.

  • PatrickC

    I think Apple has set the price of what smartphones should cost. Any handset higher than $199 will seem unjustified in most consumers eye’s (and the press).

    I think if RIM wants to beat out the iPhone 3G, they’re going to have to suck it up and make less per device. Which is a better option than having a higher priced device that the majority of people won’t care to buy.

    RIM needs to make the right moves now while their ahead, before they turn into the next Palm…. irrelevance.

  • PatrickC

    I think Apple has set the price of what smartphones should cost. Any handset higher than $199 will seem unjustified in most consumers eye’s (and the press).

    I think if RIM wants to beat out the iPhone 3G, they’re going to have to suck it up and make less per device. Which is a better option than having a higher priced device that the majority of people won’t care to buy.

    RIM needs to make the right moves now while their ahead, before they turn into the next Palm…. irrelevance.

  • Walt

    Its obvious that Apple has targeted RIM and concentrated on their enterprise system over the user apps in this current release. RIM will definitely lose a tremendous amount of customers if they don’t price the Bold in line with the iPhone. Like someone said before…Apple has only been in the phone business for one year. RIM is a sinking ship.

  • Walt

    Its obvious that Apple has targeted RIM and concentrated on their enterprise system over the user apps in this current release. RIM will definitely lose a tremendous amount of customers if they don’t price the Bold in line with the iPhone. Like someone said before…Apple has only been in the phone business for one year. RIM is a sinking ship.

  • Mike

    I have both an iPhone and a 8820. In my opinion, software keys are much more difficult to use compared to hardware keys. The iPhone is great if you don’t have to type much. I find that if you use your phone for work, BB has the advantage. RIM should improve their browser. Doing that would take on an important feature the iPhone has. I will add that I do not like 2 year contracts! 2 year contracts are too long for a phone.

  • Mike

    I have both an iPhone and a 8820. In my opinion, software keys are much more difficult to use compared to hardware keys. The iPhone is great if you don’t have to type much. I find that if you use your phone for work, BB has the advantage. RIM should improve their browser. Doing that would take on an important feature the iPhone has. I will add that I do not like 2 year contracts! 2 year contracts are too long for a phone.

  • TerranceC

    I can’t remember where, but I do remember seeing a quote by a RIM VP stating that company profits on handheld sales are essentially a “rounding error” as far as an impact on the bottom line is concerned. If this is the case, then they might actually decide to lower the price on the Bold to be in direct competition with the iPhone 3G, just to spite Steve Jobs. Plus, RIM’s got it going on as far as a background infrastructure is concerned – the BlackBerry network worked during 9/11, when every other network in the US crashed, and Me.com is shiny, but it doesn’t have the security or business integration offered by RIM. On top of that, they have three very different and very cool handhelds coming out: a powerful candybar, a snazzy flip, and a shiny touchscreen. I think RIM will stay on top for quite some time.

  • TerranceC

    I can’t remember where, but I do remember seeing a quote by a RIM VP stating that company profits on handheld sales are essentially a “rounding error” as far as an impact on the bottom line is concerned. If this is the case, then they might actually decide to lower the price on the Bold to be in direct competition with the iPhone 3G, just to spite Steve Jobs. Plus, RIM’s got it going on as far as a background infrastructure is concerned – the BlackBerry network worked during 9/11, when every other network in the US crashed, and Me.com is shiny, but it doesn’t have the security or business integration offered by RIM. On top of that, they have three very different and very cool handhelds coming out: a powerful candybar, a snazzy flip, and a shiny touchscreen. I think RIM will stay on top for quite some time.

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